Robinhood Expands Trading Services to Three New US Regions, Considers Offering Crypto Futures

Highlights:

• Robinhood expands to new US territories, offering 15 cryptocurrencies.
• The company is considering launching crypto futures products in the US and EU.
• Robinhood advances crypto initiatives despite heightened SEC’s scrutiny.

The renowned trading platform Robinhood has expanded its services to three new United States territories: the US Virgin Islands, Hawaii, and Puerto Rico. Robinhood is now available in all 50 US states, enabling users to trade 15 assets on the platform, including Bitcoin, Ethereum, Dogecoin, and Avalanche. 

Crypto trading on Robinhood is now available in Hawaii, Puerto Rico, and the US Virgin Islands 🔥 pic.twitter.com/rpO4WDoLK3

— Robinhood (@RobinhoodApp) July 2, 2024

This move follows a significant regulatory change by Hawaii’s Department of Commerce and Consumer Affairs (DCCA). On June 28, the Hawaiian regulator announced that cryptocurrency services no longer need a money transmitter license to operate in the state. This is a significant victory for the industry, as Hawaii is known for having one of the strictest financial regulatory environments in the US, alongside California and New York. 

This latest development puts Robinhood ahead of major US competitors like Kraken and Coinbase in terms of availability to US customers. The expansion is particularly noteworthy given the challenges faced by other market players. For example, Binance exited the US market due to regulatory pressures. This underscores the diverging paths of different platforms in the US crypto landscape.

Robinhood Plans to Introduce Crypto Futures In the US and Europe

Bloomberg reported, citing sources familiar with the matter, that Robinhood is also considering using Luxembourg-based crypto exchange Bitstamp’s regulatory licenses to offer futures trading to customers in Europe and the US in the coming months. In June, the brokerage platform announced plans to acquire Bitstamp for $200 million. Robinhood’s acquisition is still pending and is anticipated to be completed in 2025. 

JUST IN: Robinhood considers offering #Bitcoin and crypto futures in US & Europe – Bloomberg pic.twitter.com/g6C97RdAUA

— Bitcoin Magazine (@BitcoinMagazine) July 2, 2024

Bitstamp, the oldest operating crypto exchange, holds over 50 licenses and registrations worldwide. This deal would be Robinhood’s first step into serving institutional crypto clients. Furthermore, in March, Robinhood acquired Marex FCM, securing the required license to provide futures trading in the US. The company is considering launching CME-based futures for Ether and Bitcoin in the US.

The consideration of listing crypto futures comes as demand for crypto derivatives has risen sharply. Since the approval of spot Bitcoin ETFs in January, derivatives trading volumes have surged to $3.69 trillion, surpassing centralized spot trading volumes of $1.57 trillion.

Crypto Firm Expands Crypto Strategy Despite SEC’s Wells Notice

Despite its success, Robinhood faces regulatory challenges in the crypto industry. On May 4, year, the company received a Wells Notice from the US Securities and Exchange Commission (SEC), signaling potential enforcement action over tokens traded on its platform. Robinhood Markets announced plans to challenge allegations of securities violations brought by the SEC. Robinhood CEO Vlad Tenev criticized the SEC’s actions, saying the regulatory body hinders innovation and affects American companies and investors.

Over the last three years, we’ve reached a state of regulatory onslaught that is harmful to American companies and consumers. The SEC’s continued attack on crypto, coupled with recent rule proposals like the one related to predictive data analytics, mark yet another improper…

— Vlad Tenev (@vladtenev) May 6, 2024

Robinhood Brings AI to its Users with Pluto Capital Acquisition

Besides expanding into new territories, Robinhood has taken strategic steps to improve its services. The company has acquired Pluto, an AI-driven investing assistant, intending to integrate advanced AI tools into its platform. This acquisition is designed to help retail investors make better-informed investment decisions through artificial intelligence.

Robinhood agreed to buy the artificial-intelligence research platform Pluto to bring more tailored investment strategies and analysis to the retail brokerage’s users. https://t.co/UmtXZ08Yp7

— Bloomberg Technology (@technology) July 1, 2024

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